When an Ohio couple is happy with their relationship or marriage, they cannot imagine a life where they are not happy or together. Unfortunately, divorces do happen. Often times, after years of marriage, spouses are left splitting up and dividing the assets and property they have accumulated over the years or even decades. In general, this task is challenging and emotional. However, when a couple dissolves their marriage during their retirement years, this can pose issues they may not be prepared for, as a grey divorce is different from a divorce occur in one’s younger and working years.
Divorcing during retirement years could open up a spouse to certain vulnerabilities. While one expects to share retirement with his or her spouse, they do not expect to lose some or half of their retirement account to their spouse because of a divorce. Additionally, because one is already retired, they are likely to have no working years left to recover from any economic hardships that could occur because of a divorce occurring later in life.
Retirement plans impacted by divorce
Even the most well thought-out and planned retirement plan could be dismantled by a divorce. And when one is already in their retirement years, this is a time where he or she has diminished resources, reduced household income, reduction in assets and cash flow and is more vulnerable to financial changes. Thus, it is important to include financial planning while going through a grey divorce.
Once establishing what belongs to each spouse and what must be split as marital assets, it is important to consider one’s financial future. This means budgeting and gaining an honest perspective of their financial situation when it comes to assets they are left with and how their retirement accounts and pension are impacted.
Divorcing at any age is a major event. It not only sparks emotions but also is the cause of many changes and the need to make significant life decisions. Thus, it is important that a divorcing spouse takes the time to assess how to move forward with the divorce process and assess how a divorce could impact your assets, property and retirement accounts. This can help one determine what the best course of action is best for them now and in the long run.